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1. because of its payment structure, bonds are also know as: fixed income covenants preferred ... Question: 1. Because of its payment structure, bonds are also know as: Fixed income Covenants Preferred... 1. Because of its payment structure, bonds are also know as: Fixed income Covenants Preferred stock Common stock None of the above

2. Which one of the following foreign bonds is the actual name of bonds that are traded in the U.S.?

Bulldog bond

Shogun bond

Take-your-money-and-run bond Yankee bond

All of the above

None of the above

3. How much are you willing to pay for a zero that matures in 10 years, has a face value of $1,000 and your required rate of return is 7%? Round to the nearest cent. Do not include a dollar sign in your answer. (i.e. If your answer is $432.51, then type 432.51 without $ sign)

4. A zero-coupon bond that is currently priced at $456, has a face value of $1,000, and matures in 10 years. What is the yield to maturity of this bond? Round to the nearest hundredth percent. Do not include the percent sign in your answer. (For example, if your answer is 5.67%, type 5.67 without % sign)

5. LLY Corporation is planning to issue a $1,000 face value bond with a maturity of 30 years. The annual coupon rate is expected to be 7.25% and interest payments are expected to be paid semi-annually. If the market is requiring a return of 10% annually on similar bonds, then what should LLY expect to receive for each bond they issue? Round to the nearest cent. Do not a dollar sign in your answer. (i.e. If your answer is $432.51, then type 432.51 without $ sign)

6. An 8% annual coupon bond, with a face value of $1,000 that matures in 15 years, pays interest annually, and has a yield to maturity of 9.75 percent. What is the current market price of the bond? Round to the nearest cent. Do not a dollar sign in your answer. (i.e. If your answer is $432.51, then type 432.51 without $ sign)

7. You are purchasing a bond that currently sold for $1,085.36. it has the time-to-maturity of 12 years and a coupon rate of 7%, paid semi-annually. The bond can be called for $1,040 in 3 years. What is the yield to maturity of this bond? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign)

8. What is the YTM of a bond if it is sold for $1,029.33, pays a semi-annual coupon of $40, and matures in 15 years? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign)

9.

Ford Motors bond is currently traded at the value of $1,208.70 and a yield of 4.22%. The current rating of the bond is BBB. If the bond rating company upgrades the rating to A, what will happen to the price and the yield of the bond?

Price: Increase, Yield: Decrease

Price: Unchanged, Yield: Increase

Price: Decrease, Yield: Unchanged

Price: Decrease, Yield: Decrease

Price: Increase, Yield: Increase

Price: Decrease, Yield: Increase

Price: Unchanged, Yield: IncreaseUnchange

10. If a $1,000 face value bond is sold at $1,052.41 and has a coupon rate of 10%, which one of the following rate is the most feasible yield to maturity of this bond?

12.54%

10.00%

11.24%

All of the above are feasible.

None of the above are feasible.

Not enough information to answer.